ATCO LTD -CLASS I (ACO-X.CA) Stock Fundamental Analysis
Canada - TSX:ACO-X - CA0467894006 - Common Stock
48.87 CAD
+0.19 (+0.39%)
We assign a fundamental rating of 5 out of 10 to ACO-X. ACO-X was compared to 21 industry peers in the Multi-Utilities industry. Both the profitability and the financial health of ACO-X get a neutral evaluation. Nothing too spectacular is happening here. ACO-X has a decent growth rate and is not valued too expensively. Finally ACO-X also has an excellent dividend rating. This makes ACO-X very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year ACO-X was profitable.
ACO-X had a positive operating cash flow in the past year.
In the past 5 years ACO-X has always been profitable.
Each year in the past 5 years ACO-X had a positive operating cash flow.
1.2 Ratios
ACO-X has a Return On Assets (1.64%) which is comparable to the rest of the industry.
ACO-X's Return On Equity of 9.28% is amongst the best of the industry. ACO-X outperforms 95.24% of its industry peers.
ACO-X has a Return On Invested Capital of 3.71%. This is in the better half of the industry: ACO-X outperforms 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACO-X is in line with the industry average of 3.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.64% | ||
| ROE | 9.28% | ||
| ROIC | 3.71% |
ROA(3y)1.62%
ROA(5y)1.41%
ROE(3y)9.17%
ROE(5y)7.94%
ROIC(3y)3.92%
ROIC(5y)3.81%
1.3 Margins
ACO-X has a Profit Margin of 8.65%. This is comparable to the rest of the industry: ACO-X outperforms 42.86% of its industry peers.
In the last couple of years the Profit Margin of ACO-X has declined.
ACO-X has a worse Operating Margin (24.24%) than 76.19% of its industry peers.
In the last couple of years the Operating Margin of ACO-X has declined.
ACO-X has a Gross Margin of 75.61%. This is comparable to the rest of the industry: ACO-X outperforms 42.86% of its industry peers.
In the last couple of years the Gross Margin of ACO-X has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.24% | ||
| PM (TTM) | 8.65% | ||
| GM | 75.61% |
OM growth 3Y2.6%
OM growth 5Y-3.18%
PM growth 3Y14.9%
PM growth 5Y-4.41%
GM growth 3Y-0.25%
GM growth 5Y-1.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACO-X is destroying value.
The number of shares outstanding for ACO-X remains at a similar level compared to 1 year ago.
The number of shares outstanding for ACO-X has been reduced compared to 5 years ago.
ACO-X has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.76, we must say that ACO-X is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ACO-X (0.76) is better than 85.71% of its industry peers.
The Debt to FCF ratio of ACO-X is 33.61, which is on the high side as it means it would take ACO-X, 33.61 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 33.61, ACO-X belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
A Debt/Equity ratio of 2.56 is on the high side and indicates that ACO-X has dependencies on debt financing.
With a Debt to Equity ratio value of 2.56, ACO-X is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 33.61 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.73
WACC5.05%
2.3 Liquidity
A Current Ratio of 1.61 indicates that ACO-X should not have too much problems paying its short term obligations.
ACO-X has a Current ratio of 1.61. This is amongst the best in the industry. ACO-X outperforms 95.24% of its industry peers.
ACO-X has a Quick Ratio of 1.45. This is a normal value and indicates that ACO-X is financially healthy and should not expect problems in meeting its short term obligations.
ACO-X's Quick ratio of 1.45 is amongst the best of the industry. ACO-X outperforms 95.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.20% over the past year.
Measured over the past 5 years, ACO-X shows a small growth in Earnings Per Share. The EPS has been growing by 6.10% on average per year.
Looking at the last year, ACO-X shows a small growth in Revenue. The Revenue has grown by 7.64% in the last year.
ACO-X shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.98% yearly.
EPS 1Y (TTM)10.2%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%3.49%
Revenue 1Y (TTM)7.64%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%4.14%
3.2 Future
ACO-X is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.23% yearly.
The Revenue is expected to grow by 2.02% on average over the next years.
EPS Next Y7.51%
EPS Next 2Y3.99%
EPS Next 3Y4.23%
EPS Next 5YN/A
Revenue Next Year-0.6%
Revenue Next 2Y1.27%
Revenue Next 3Y2.02%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.03, which indicates a very decent valuation of ACO-X.
Compared to the rest of the industry, the Price/Earnings ratio of ACO-X is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.30, ACO-X is valued rather cheaply.
The Price/Forward Earnings ratio is 10.53, which indicates a very decent valuation of ACO-X.
ACO-X's Price/Forward Earnings is on the same level as the industry average.
ACO-X's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 10.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACO-X indicates a somewhat cheap valuation: ACO-X is cheaper than 71.43% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACO-X indicates a rather cheap valuation: ACO-X is cheaper than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.08 | ||
| EV/EBITDA | 7.91 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.47
PEG (5Y)1.81
EPS Next 2Y3.99%
EPS Next 3Y4.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.15%, ACO-X is a good candidate for dividend investing.
With a Dividend Yield of 4.15, ACO-X pays less dividend than the industry average, which is at 5.16. 90.48% of the companies listed in the same industry pay a better dividend than ACO-X!
ACO-X's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
5.2 History
The dividend of ACO-X has a limited annual growth rate of 3.93%.
ACO-X has paid a dividend for at least 10 years, which is a reliable track record.
ACO-X has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.93%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
50.80% of the earnings are spent on dividend by ACO-X. This is a bit on the high side, but may be sustainable.
The dividend of ACO-X is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP50.8%
EPS Next 2Y3.99%
EPS Next 3Y4.23%
TSX:ACO-X (9/12/2025, 7:00:00 PM)
48.87
+0.19 (+0.39%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners28.52%
Inst Owner ChangeN/A
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap5.48B
Analysts78.67
Price Target56.83 (16.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
Yearly Dividend1.96
Dividend Growth(5Y)3.93%
DP50.8%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.14%
Min EPS beat(2)-3.78%
Max EPS beat(2)1.49%
EPS beat(4)3
Avg EPS beat(4)2.9%
Min EPS beat(4)-3.78%
Max EPS beat(4)10.76%
EPS beat(8)7
Avg EPS beat(8)4.49%
EPS beat(12)9
Avg EPS beat(12)3.59%
EPS beat(16)12
Avg EPS beat(16)4.35%
Revenue beat(2)0
Avg Revenue beat(2)-9.2%
Min Revenue beat(2)-17.7%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-10.59%
Min Revenue beat(4)-18.52%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-12.35%
Revenue beat(12)1
Avg Revenue beat(12)-9.18%
Revenue beat(16)2
Avg Revenue beat(16)-8.91%
PT rev (1m)0%
PT rev (3m)-0.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)22.01%
EPS NY rev (1m)4.04%
EPS NY rev (3m)4.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-4.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 10.53 | ||
| P/S | 1.08 | ||
| P/FCF | 15.08 | ||
| P/OCF | 2.33 | ||
| P/B | 1.16 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 7.91 |
EPS(TTM)4.43
EY9.06%
EPS(NY)4.64
Fwd EY9.49%
FCF(TTM)3.24
FCFY6.63%
OCF(TTM)20.97
OCFY42.9%
SpS45.3
BVpS42.22
TBVpS30.24
PEG (NY)1.47
PEG (5Y)1.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.64% | ||
| ROE | 9.28% | ||
| ROCE | 4.79% | ||
| ROIC | 3.71% | ||
| ROICexc | 3.82% | ||
| ROICexgc | 4.03% | ||
| OM | 24.24% | ||
| PM (TTM) | 8.65% | ||
| GM | 75.61% | ||
| FCFM | 7.15% |
ROA(3y)1.62%
ROA(5y)1.41%
ROE(3y)9.17%
ROE(5y)7.94%
ROIC(3y)3.92%
ROIC(5y)3.81%
ROICexc(3y)4.06%
ROICexc(5y)3.97%
ROICexgc(3y)4.27%
ROICexgc(5y)4.16%
ROCE(3y)5.04%
ROCE(5y)4.9%
ROICexcg growth 3Y1.58%
ROICexcg growth 5Y-6.25%
ROICexc growth 3Y1.11%
ROICexc growth 5Y-6.55%
OM growth 3Y2.6%
OM growth 5Y-3.18%
PM growth 3Y14.9%
PM growth 5Y-4.41%
GM growth 3Y-0.25%
GM growth 5Y-1.16%
F-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 33.61 | ||
| Debt/EBITDA | 5.88 | ||
| Cap/Depr | 238.99% | ||
| Cap/Sales | 39.13% | ||
| Interest Coverage | 2.29 | ||
| Cash Conversion | 113.97% | ||
| Profit Quality | 82.69% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 0.76 |
F-Score6
WACC5.05%
ROIC/WACC0.73
Cap/Depr(3y)212.07%
Cap/Depr(5y)195.52%
Cap/Sales(3y)33.77%
Cap/Sales(5y)31.75%
Profit Quality(3y)134.57%
Profit Quality(5y)187.54%
High Growth Momentum
Growth
EPS 1Y (TTM)10.2%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%3.49%
EPS Next Y7.51%
EPS Next 2Y3.99%
EPS Next 3Y4.23%
EPS Next 5YN/A
Revenue 1Y (TTM)7.64%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%4.14%
Revenue Next Year-0.6%
Revenue Next 2Y1.27%
Revenue Next 3Y2.02%
Revenue Next 5YN/A
EBIT growth 1Y15.06%
EBIT growth 3Y7.57%
EBIT growth 5Y-2.22%
EBIT Next Year429.28%
EBIT Next 3Y82.47%
EBIT Next 5YN/A
FCF growth 1Y-5.22%
FCF growth 3Y-8.79%
FCF growth 5Y2.94%
OCF growth 1Y13.97%
OCF growth 3Y5.63%
OCF growth 5Y7.34%